Many business decisions are made on a gut feeling and a rough sum in someone's head. A cost-benefit analysis puts the decision on paper, so the numbers can be checked and the reasoning is visible to everyone involved. This tool writes that document from a short description.
You describe the decision, the options, the costs you know and the benefits you expect. The tool returns a full analysis in Markdown, with tables you can paste into a document or a spreadsheet. It never fills gaps with invented figures: every number is marked as from your brief or as an estimate to verify, and a missing figure becomes a placeholder in square brackets.
Part of the Business documents family, it fits a purchase, a hire, a new service or a supplier change, whenever you need a first draft to discuss with a partner or your accountant.
What you get
- The options, including doing nothing, over a stated horizon (three years if you give none)
- A list of assumptions, each figure labeled as from the brief or as an estimate to verify
- Costs and benefits tables, both with a source column
- Totals, net benefit, ROI and payback period, with the calculations shown
- A sensitivity check with benefits 20% lower and 20% higher than the base case
- Risks, non-financial factors and a go, no-go or go-with-conditions recommendation
What you fill in
- Decision to evaluate required
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The decision or investment, the options, known costs (one-off and recurring), expected benefits, time horizon and any figures you have.
How to use it, step by step
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Write the decision and the options
For example buying equipment versus renting it. The tool adds doing nothing as a baseline, so list only the real alternatives.
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Add every figure you have
One-off costs, recurring costs, expected savings or extra revenue, and the time horizon. Numbers from quotes and invoices make the result useful.
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Choose the output language and generate
Headings, table labels and placeholders follow the language setting, and the currency follows your brief.
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Fill the placeholders and check the sums
Replace each placeholder and estimate with a real figure, generate again and check the arithmetic in a spreadsheet.
Example, input and output
Input
- Decision to evaluate
- Buy a second oven for 12,000 euros (installation 800 euros, maintenance 400 euros a year) or keep renting oven time at 600 euros a month. Horizon 3 years.
Output
| | Buy | Keep renting |
|---|---|---|
| One-off costs | 12,800 € | 0 € |
| Recurring costs | 1,200 € | 21,600 € |
| Total | 14,000 € | 21,600 € |
Net benefit of buying versus renting: 21,600 − 14,000 = 7,600 €.
ROI: 7,600 ÷ 14,000 = 54%.
Payback: 12,800 ÷ (7,200 − 400) per year = about 1.9 years.
Recommendation: go with conditions, if [oven lifespan] is at least 3 years.
Illustrative example written by the editorial team to show the expected format.
Tips for better results
- Give the time horizon yourself. Three years suits equipment, a lease may need a different period.
- Write recurring costs per month or per year, and say which. Mixed units are a common source of wrong totals.
- Name the benefits you cannot price, such as less stress at peak times, so they are not ignored.
Who uses it, and for what
Small business owner before a purchase
Compare buying, leasing or renting equipment and bring a clear page to the bank.
Operations manager proposing a change
Turn a supplier switch into a one-page case your manager can challenge.
Consultant preparing a client meeting
Draft the analysis with the client's figures, then refine it together.
Limits and good practice
- The tool works only with the figures you give it. It does not look up prices, rates or taxes.
- Language models can make arithmetic mistakes. The calculations are shown so you can check each one.
- The analysis supports a decision, it does not replace an accountant or financial advisor. Each new generation uses credits from your plan, see pricing.
Frequently asked questions
What is a cost-benefit analysis?
A structured comparison of what a decision costs and what it brings back over a set period. Costs and benefits are listed, totaled and compared, usually with a net benefit, a return on investment and a payback period, so other people can check the reasoning.
How is ROI calculated in the analysis?
Total benefits minus total costs, divided by total costs, over the time horizon. The tool shows the formula and the numbers it used, so you can follow each step. Without figures in the brief, you get the formula with placeholders and a note on how to fill them in.
Will the tool invent numbers I did not give it?
No. Each figure is labeled as from your brief or as an estimate to verify, and estimates appear only in the assumptions list. A missing essential number becomes a placeholder in square brackets, such as [price], so the gap stays visible instead of hiding behind a made-up value.
What does the sensitivity section show?
The result recalculated with benefits 20% lower and 20% higher than the base case. It tells you whether the decision still holds if things go worse or better than expected. The 20% is a stated assumption, not a forecast, and you can ask for another range.
Can I use the analysis for a loan or a grant application?
As a first draft to organize your figures, yes. Lenders and grant bodies expect documented numbers, so replace every estimate with a real quote, invoice or statement and have your accountant check the final version.
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